Chapter 730 Study Talk
Hearing that Chen Huai intends to invest in a steel logistics park in Qinghe, Cheng Wenguang said with interest: "Tell me in detail..."
Chen Huai knew that Cheng Wenguang was more sensitive to local industrial development than his second uncle. After scratching his head, he explained to Cheng Wenguang the original intention and specific operating model of his decision to invest in the construction of a steel logistics park in Qinghe:
"The domestic steel industry has experienced a high growth period of more than ten years, and its future growth potential is still huge. However, as for the market circulation system, after just undergoing a drastic change after the dual-track system, it is far from mature, and the construction of steel markets in various places is also somewhat chaotic. As for steel companies, everyone's views are still somewhat different in how to operate and explore the market in the future. At present, the mainstream, except for specific large customers, relatively scattered steel markets advocate handing over to steel traders for maintenance and construction, but this model seems not proactive enough for super-large steel companies. I discussed with Meigang's management for a long time, and I also had some experience before. As a new steel company, Meigang needs to actively participate in the construction of downstream industrial chains, so I decided to explore cooperation with steel trade companies. In addition to Xinpu, Meixi Steel In addition to the construction of the iron logistics trade base, we also plan to choose two or three places to build the steel logistics park. We hope to use this as a hub to promote the better penetration of Meigang's steel products into the regional market. Of course, there are still some uncertain factors now. For example, after the completion of the steel logistics park, the profit model is still relatively vague. At present, it seems that it is mainly rental income, which is not particularly ideal. However, for the places where the logistics park is built, in addition to the strengthening of energy conservation, logistics, trade and other links, some steel finishing processing enterprises can be introduced based on the logistics park. In addition, there should be supporting development in catering, accommodation, commerce and other fields. We have always told Ji Chengxi that we should strengthen local cooperation, so we decided to use this project to try the waters in Qinghe..."
Cheng Wenguang smiled and said, "No wonder Tan Shiwei and others have a good impression of you. The perspective of your consideration of the problem is likable. From this point of view, it is a pity that Meigang cannot take over the construction of the coal-transport terminal?"
Chen Huai smiled and said, "The Jihe Port coal transportation terminal, the steel logistics base, and the supporting steel processing zones and service areas can indeed be integrated to make a larger project, which will have great benefits for Meigang and Qinghe City. However, there is nothing wrong with Changqing Group taking over the subsequent construction of the coal transportation terminal in the end, and they can still cooperate with each other. After all, Changqing Group has built a terminal, don't you want a large logistics system to form an outer space to ensure port throughput? I think the construction of the logistics park can instead attract some investment from Changqing Group..."
Cheng Wenguang shook his head and smiled, saying, "Everyone can have an open attitude like you, and many things will be much simpler."
"Opening is also forced out," Chen Huai said, "I have no choice but to deal with others, so I choose to cooperate. To put it nicely, it is to be a master of the times..."
Cheng Wenguang laughed and said, "Shimen is a transportation hub in the Shanxi-Hebei region. Since Meigang can invest in the steel logistics park in Qinghe, it can also be built in Shimen..."
Chen Huai said: "There are several steel enterprises in southern Hebei, but the scale is small. Shanxi Province is currently Taigang Group and has a large market space. Meigang is willing to enter the steel market in Shanxi and Hebei on a large scale and then penetrate the steel markets of Yanjing and Tianjin and Hai municipalities directly under the central government. This is also one of the main factors that we decided to build a medium-sized logistics park in Qinghe first. However, we dare not be too big. The steel markets in Shanxi, Hebei, Beijing and Tianjin are currently dominated by several steel enterprises in northern Hebei. Although they do not exclude the entry of steel products from other places, if Meigang now uses 400 million or more funds to directly build the largest steel logistics trading park in the north in Shimen, the Jin-Hebei hub and the gateway of Beijing and Tianjin, it is probably not good for Uncle Cheng..."
Meigang enters Qinghe to invest in the Steel Logistics Park, and the impact will not be particularly great. Limeigang slowly penetrates into the Shanxi-Hebei market, and imports 300,000 tons or even 1 million tons of steel products every year, which will not cause any disturbance to the demand of nearly 20 million tons of steel markets in Shanxi-Hebei-Beijing-Tianjin.
Shimen is not only the capital of Hebei Province, but also the land logistics hub of Shanxi, Hebei, Beijing and Tianjin. If Meigang invests huge amounts of money in Shimen to build a large steel logistics trading base, it is inevitable that large steel enterprises in Hebei Province will oppose it. Yanjing Steel, the leader of northern steel companies, is also very likely to jump out and talk about it.
After all, for companies such as Yanjing Steel, this is a completely close-range tactic for companies such as Yanjing Steel.
Cheng Wenguang's mind also wants to promote local economic development, but in the minds of Yanjing Steel and local steel companies that will bear greater competitive pressure in Hebei Province, it will be a completely different idea; and the influence of these companies on the political situation cannot be ignored.
For Meigang, the steelmaking business will not have a large-scale expansion plan in the next two or three years. Based on the existing cash flow, it will build some small-scale fine steel production lines or acquire some small and medium-sized steel companies in the area to enrich product lines and enhance market penetration, and the production capacity will gradually expand to a scale of 70,000 tonnes.
Before further maturity in market construction, technical digestion and other aspects, Chen Huai will not consider starting the second phase of the larger Xinpu Steel Plant.
As for Meigang's current production capacity, there is no need to make a fierce attitude towards Yangang and several steel companies in Hebei Province. The high-growth market in East China can fully accommodate Meigang's current development.
Cheng Wenguang nodded, knowing that Chen Huai's considerations were mature and comprehensive, but he still had different opinions and said, "Your considerations are good, but competition has the benefits of competition. From the perspective of people's laziness, they hate competition because competition brings pressure, but we also need to see that competition brings growth momentum. The fundamental reason for the reform of state-owned enterprises is that most state-owned enterprises are not competitive enough. If state-owned enterprises can gain a foothold in the open market competition, there is no need to change anything? The market is a touchstone, and practice is the only criterion for testing the truth. Just like the current situation in Donghua City, I don't think it will be unfavorable to Meigang, let alone the benefits of Donghua local development..."
"If Uncle Cheng wants me to come and be a catfish, I will naturally have no choice..." Chen Huai said.
"Don't say it so pitifully," Cheng Wenguang laughed and turned his head. He ordered Chen Yongjun, who had been involved in their conversation but rarely spoke, "I think the province can come forward to promote investment projects in a large steel logistics and processing park, so that Shimen Steel Group can participate. However, I send investment letters to Meigang, Yangang, Tanggang, Jiangning Steel and other companies. The province does not set any biased thresholds to allow several companies to compete openly. If Yangang and other companies choose to give up, and the construction rights will eventually fall into Meigang's hands, they cannot blame me for leaving the benefits to their families..."
Chen Yongjun nodded and said, "I remember what Governor Cheng said to Chen Huai, and I will take time to sort it out in the morning..."
At this time, Cheng Yi pushed the door open and urged them to go out for breakfast. The rising sun outside spread the golden sunlight through the flowers and leaves placed on the windowsill, making the study transparent and bright.
Chen Yongjun had eaten a long time ago and did not go to the restaurant to accompany him to eat.
They had just arrived in Hebei Province and were not familiar with many things. He also had to contact Cheng Wenguang to confirm the morning event arrangements, and he also had to take time to record the key points he had just talked in the study so as not to forget them.
Chen Yongjun put the notebook together and put it in his pocket, and he also felt the idea of building a larger steel logistics park in Shimen.
Cheng Wenguang worked in Hebei Province, not only the Song and Ji families, but also the local governments also expressed their hopes and shouldered important tasks, in addition to adjusting the industrial structure of northern Hebei, but also revitalizing the economy of southern Hebei, promoting the southern Shanxi Line, and the construction of the Hebei River Port.
At the beginning of getting off the bus, it was always a mess. In terms of economic and industrial development, in addition to some inherent lag disadvantages of Hebei Province, the impact of the Asia-Pacific financial crisis on Hebei Province is not as strong as that of southern provinces and cities, but it also has some impacts - how to carry out the work to be effective and rapid, how to gain a foothold in Hebei Province, and strengthen the trust of Ji Song and other leaders from above. Not only did Cheng Wenguang think, but Chen Yongjun and other subordinates who were on duty also needed to think, and provide important suggestions to Cheng Wenguang to be considered qualified and live up to the trust.
The Shimen Steel Logistics and Finishing Park project will not be too large, but once the water is injected, the total investment can be about one billion. This is a strong accelerator for Shimen Market, which has been lagging behind in economic development, but perhaps more importantly, it will stimulate Yangang and several large steel enterprises in northern Hebei.
If they did not want Meigang to enter the steel market in Shanxi, Hebei, Beijing and Tianjin in a turbulent manner, Shimen City was their last main position to block Meigang, and they might also enter Qinghe to block Meigang. In this way, the economic development of southern Hebei will suddenly have a lot of vitality.
Although Chen Huai and Cheng Wenguang did not specifically mention Shimen Steel Group during the conversation, Chen Yongjun believed that Chen Huai and Cheng Wenguang both paid attention to Shimen Steel.
Shimen Steel Group is not large in scale. At this time, it produces 350,000 tons of iron and 400,000 tons of steel. It is considered a large enterprise in Shimen City, but in the domestic steel industry, it is a trivial small factory.
Shimen Iron and Steel Group was restructured in 1994. In addition to the Shimen Municipal Government holding certain shares, the real major shareholder is not another company, but the state-owned central enterprise Jinshi International Group controlled by the Hu family.
At this time, the good show came. As a local steel company, Shimen Steel, Cheng Wenguang named Shimen Steel's participation in the logistics park project, which was considered to protect local interests. However, Shimen Steel has neither the financial strength nor the actual production capacity, nor the strength, and has contracted the entire logistics park project.
At this time, it depends on the reaction of Jinshi International Group, the major shareholder behind Shimen Steel.
If the Hu family behind Jinshi International wants to personally block Meigang from entering the steel market in Shanxi, Hebei, Beijing and Tianjin, in addition to participating in the construction of the steel logistics park on a large scale, in order to match the actual logistics trade scale of the steel logistics park, it will inevitably expand the production capacity of Shimen Steel on a larger scale.
Chapter completed!